REG - Plus500 Ltd - Plus500 H1 2023 Interim Results
14/08/2023 07:00
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RNS Number : 1458J Plus500 Limited 14 August 2023
14 August 2023
Plus500 Ltd.
("Plus500", the "Company" or together with its subsidiaries the "Group")
Interim results for the six month period ended 30 June 2023
Further progress and execution against Plus500's strategic plans
Significant additional $120.0m shareholder returns announced today, with total
shareholder returns of $347.4m so far in FY 2023
Strategic expansion of geographic footprint achieved by obtaining new
regulatory licences
FY 2023 expected to be in line with current market expectations 1 (#_ftn1)
Plus500, an established global multi-asset fintech group operating proprietary
technology-based trading platforms, today announces its interim results for
the six month period ended 30 June 2023 2 (#_ftn2) .
Robust performance 3 (#_ftn3) , underpinned by market-leading technology
platforms, diversified revenue streams and continued ability to attract and
retain higher value customers
Financial Highlights:
- Group revenue (comprising trading income of $346.2m and interest
income of $22.3m), up 15% to $368.5m, compared to H2 2022 (H2 2022: $321.2m,
H1 2022: $511.4m)
- Customer Income 4 (#_ftn4) , a key measure of the Group's
underlying performance, up 2% to $304.3m, compared to H2 2022 (H2 2022:
$299.8m, H1 2022: $339.8m)
- EBITDA 5 (#_ftn5) up 17% to $174.1m, compared to H2 2022 (H2
2022: $148.5m, H1 2022: $305.3m)
- EBITDA margin up 2% to 47% compared to H2 2022 (H2 2022: 46%, H1
2022: 60%)
- Basic Earnings Per Share) EPS) up 19% to $1.61, compared to H2
2022 (H2 2022: $1.35, H1 2022: $2.46)
H1 2023 H2 2022 Change % H1 2022 Change %
(H1 23 vs. H2 22) (H1 23 vs. H1 22)
Revenue $368.5m $321.2m 15% $511.4m (28%)
EBITDA $174.1m $148.5m 17% $305.3m (43%)
EBITDA Margin % 47% 46% 2% 60% (22%)
Significant additional $120.0m shareholder returns announced today:
- $60.0m dividend declared today ($0.7344 per share), comprising
of an interim dividend of $33.7m ($0.4125 per share) and a special dividend of
$26.3m ($0.3219 per share). Both dividends have an ex-dividend date of 24
August 2023, a record date of 25 August 2023 and a payment date of 9 November
2023
- $60.0m new share buyback programme announced today, comprising
of an interim buyback programme of $33.7m and a special buyback programme of
$26.3m, both to commence following completion of the existing programme
- Strength of the Group's financial performance, combined with
highly cash generative earnings model and robust balance sheet, continued to
generate compelling value during the period. Total shareholder returns
announced to date in FY 2023 is $347.4m, including dividends and share
buybacks
Operational Highlights:
Plus500 has evolved from a business providing a single OTC-based product, into
the diversified, global multi asset fintech group of today, offering a wide
range of products, services and instruments across its OTC, share dealing and
futures verticals. The Group caters to a wide customer base in more than 50
countries, all underpinned by the Group's differentiated technology
capabilities.
- Over 25 million customers registered on the Group's platforms,
providing significant inherent value over time
- Customer cohort record with 55% of OTC revenue derived from
customers trading with Plus500 for more than three years (H2 2022: 41%, H1
2022: 36%), demonstrating depth of client relationships, loyalty and enhanced
customer engagement
- Average deposit per Active Customer 6 (#_ftn6) of approximately
$6,450 in H1 2023 (H2 2022: approximately $6,400, H1 2022: approximately
$5,400)
- Strong ARPU 7 (#_ftn7) at $2,097 during H1 2023 (H2 2022:
$1,805, H1 2022: $2,357), driven by the Group's excellent revenue performance
and its ability to attract high value long term customers
H1 2023 H2 2022 Change % H1 2022 Change %
(H1 23 vs. H2 22) (H1 23 vs. H1 22)
Active Customers 175,762 177,946 (1%) 216,928 (19%)
New Customers 8 (#_ftn8) 50,449 49,274 2% 57,275 (12%)
ARPU $2,097 $1,805 16% $2,357 (11%)
AUAC 9 (#_ftn9) $1,490 $1,527 (2%) $1,441 3%
Strategic expansion of geographic footprint:
- New regulatory licence obtained in the high growth UAE market in
February 2023, with rapid progress made in developing Plus500's position in
this significant market
- New regulatory licence obtained in the Bahamas in July 2023,
further positioning Plus500 as a global multi asset fintech group which holds
13 different regulatory licenses. This new regulatory licence will enable a
comprehensive range of trading products
Delivering against strategic objectives - significant progress made in
capitalising on attractive US futures market growth opportunity:
- Strong progress made in accessing the US futures market,
representing a multi-year growth opportunity for Plus500:
o B2B Institutional opportunity - continued to develop strategic position as
a B2B market infrastructure provider, through the onboarding of various
regulated introducing brokers in the US futures market, supporting
institutional clients with brokerage-execution and clearing services
o B2C Retail opportunity - recently launched 'Plus500 Futures', a new B2C
intuitive proprietary futures trading platform. This is in addition to last
year's launch of the 'TradeSniper' platform, which now also offers trading on
'event-based contracts'
Robust and liquid balance sheet, with clear capital allocation policy
supported by strong cash generation and high-quality operating model:
- Cash balances amounted to $849.0m at the end of H1 2023 (FY
2022: $930.2m, H1 2022: $995.5m)
- No debts or loans since the Company's inception, enabling
consistent reinvestment and facilitating shareholder returns
- Significant capital maintained for required regulatory purposes,
working capital and other factors to enable additional growth both organically
or through bolt-on acquisitions
Plus500's Board of Directors (the "Board") remains confident about the outlook
for Plus500 for FY 2023 and beyond:
The Board remains confident about the Group's performance for FY 2023, despite
quieter market conditions, and anticipates that the Group's revenue and EBITDA
for the current financial year will be in line with current market
expectations.
David Zruia, Chief Executive Officer, commented:
"2023 marks the 10th anniversary of our listing on the London Stock Exchange
and I am immensely proud of the progress we have delivered over that time in
becoming the trusted, differentiated and diversified multi-asset fintech
leader we are today.
In the first half of the year, we executed on our strategy to produce a strong
performance, thanks to the power of Plus500's market-leading proprietary
technology and our consistent ability to attract and retain higher value
customers over the long term. Our increasingly diversified revenue streams,
broadened product offering, deep customer relationships and the structural
growth drivers in our end markets, mean we are able to deliver both growth and
attractive shareholder returns.
With continued operational and financial momentum being achieved, we also made
substantial progress in delivering against our strategic priorities,
particularly in harnessing the attractive growth opportunities in the US
futures market and obtaining new regulatory licences in the high growth UAE
market and very recently in the Bahamas.
Our track record of delivering outstanding shareholder returns puts us amongst
the top cohort of companies on a total returns basis within the FTSE All-Share
Index over the past ten years.
We have announced total shareholder returns so far in FY 2023 of $347.4m,
including $257.5m in share buybacks and $89.9m in cash dividends. This
demonstrates the strength of our balance sheet and the Board's continued
confidence in the Group's prospects. Our cash generative earnings model,
combined with our continued strategic, operational and financial position,
ensures Plus500 is well placed to deliver sustainable growth and strong
returns in the medium to long term."
Investor/analyst conference call:
Plus500 will host an audiocast for investors and analysts at 9.00 a.m. UK time
today, which can be accessed via the following link:
https://www.investis-live.com/plus500/64c798619b8a600d003fe6c0/plus500-half-year-2023-results
(https://www.investis-live.com/plus500/64c798619b8a600d003fe6c0/plus500-half-year-2023-results)
. The audiocast can also be accessed by dialling +44 800 358 1035 and using
the following access code: 667703.
The presentation materials and a recording of the audiocast will be available
in due course at https://investors.plus500.com/Reports/Presentation
(https://investors.plus500.com/Reports/Presentation) .
For further details
Plus500 Ltd.
Elad Even-Chen, Chief Financial Officer +972 4 8189503
Owen Jones, Head of Investor Relations +44 (0) 7551 654208
ir@plus500.com (mailto:ir@plus500.com)
Dentons Global Advisors
James Melville-Ross +44 (0)20 7664 5095
James Styles plus500@dentonsglobaladvisors.com (mailto:plus500@dentonsglobaladvisors.com)
Leah Dudley
About Plus500
Plus500 is an established global multi-asset fintech group operating
proprietary technology-based trading platforms. Plus500 offers customers a
range of trading products, including OTC ("Over-the-Counter" products, namely
Contracts for Difference (CFDs)), share dealing, as well as futures and
options on futures.
The Group retains operating licences and is regulated in the United Kingdom,
Australia, Cyprus, Israel, New Zealand, South Africa, Singapore, the
Seychelles, the United States, Estonia, Japan, the UAE and the Bahamas and
through its OTC product portfolio, offers more than 2,500 different underlying
global financial instruments, comprising equities, indices, commodities,
options, ETFs, foreign exchange and cryptocurrencies. Customers of the Group
can trade its OTC products in more than 50 countries and in 30 languages.
Plus500's trading platforms are accessible from multiple operating systems
(Windows, iOS and Android) and web browsers. Customer care is and has always
been integral to Plus500, as such, OTC customers cannot be subject to negative
balances. A free demo account is available on an unlimited basis for OTC
trading platform users and sophisticated risk management tools are provided
free of charge to manage leveraged exposure and stop losses to help customers
protect profits, while limiting capital losses.
Plus500 shares have a premium listing on the Main Market of the London Stock
Exchange (symbol: PLUS) and are a constituent of the FTSE 250 index.
www.plus500.com (http://www.plus500.com) .
The information contained within this announcement is deemed by the Company
to constitute inside information as stipulated under the Market Abuse
Regulation ("MAR"). Upon the publication of this announcement via Regulatory
Information Service ("RIS"), this inside information is now considered to be
in the public domain.
Forward looking statements
This announcement contains statements that are or may be forward-looking
statements. All statements other than statements of historical facts included
in this announcement may be forward-looking statements, including statements
that relate to the Group's future prospects, developments and strategies. The
Company does not accept any responsibility for the accuracy or completeness of
any information reported by the press or other media, nor the fairness or
appropriateness of any forecasts, views or opinions express by the press or
other media regarding the Group. The Company makes no representation as to the
appropriateness, accuracy, completeness or reliability of any such information
or publication.
Forward-looking statements are identified by their use of terms and phrases
such as "believe", "targets", "expects", "aim", "anticipate", "projects",
"would", "could", "envisage", "estimate", "intend", "may", "plan", "will" or
the negative of those, variations or comparable expressions, including
references to assumptions. The forward-looking statements in this announcement
are based on current expectations and are subject to known and unknown risks
and uncertainties that could cause actual results, performance and
achievements to differ materially from any results, performance or
achievements expressed or implied by such forward-looking statements. Factors
that may cause actual results to differ materially from those expressed or
implied by such forward looking statements include, but are not limited to,
those described in the Risk Management Framework section of the Company's most
recent Annual Report. These forward-looking statements are based on numerous
assumptions regarding the present and future business strategies of the Group
and the environment in which it is and will operate in the future. All
subsequent oral or written forward-looking statements attributed to the
Company or any persons acting on its behalf are expressly qualified in their
entirety by the cautionary statement above. Each forward-looking statement
speaks only as at the date of this announcement. Except as required by law,
regulatory requirement, the Listing Rules and the Disclosure Guidance and
Transparency Rules, neither the Company nor any other party intends to update
or revise these forward-looking statements, whether as a result of new
information, future events or otherwise.
Review of H1 2023 Results
Robust first half performance both financially and operationally
In H1 2023, Plus500 again delivered a robust performance, demonstrating the
capability and strengths of the Group's high-quality operating model, its
best-in-class leading proprietary technology and the increasingly diversified
nature of the business.
Even in calmer financial markets, Plus500's ability to attract and retain
customers, driving higher lifetime values, shows the inherent strengths of the
Group's trusted, innovative platforms and its ability to deliver value for
shareholders through the macroeconomic cycle.
Thanks to its strong balance sheet, including cash balances of $849.0m at
period end, the Group is able to invest in its future growth, both organically
and through a disciplined approach to strategic bolt on acquisitions. This
approach enables Plus500 to enhance its offering for customers by accessing
new markets and adding new products, services and features. In turn, this
healthy financial position enables to deliver attractive and sustainable
returns to shareholders, through share buybacks and dividends.
Customer deposits in the period reached $1.1 billion (H2 2022: $1.1 billion,
H1 2022: $1.2 billion), emphasising ongoing customer confidence in Plus500 and
the reliability of the Group's trading platforms. The average deposit per
Active Customer also increased to approximately $6,450 in H1 2023 (H2 2022:
approximately $6,400, H1 2022: approximately $5,400), despite more subdued
trading volumes across global financial markets.
Customer loyalty remained strong, with 85% of H1 2023 OTC revenue derived from
customers trading with Plus500 for more than a year (H2 2022: 81%, H1 2022:
82%), 55% for more than three years (H2 2022: 41%, H1 2022: 36%) and 32% for
more than five years (H2 2022: 27%, H1 2022: 15%), again demonstrating the
depth of client relationships, loyalty and enhanced engagement.
Plus500 continually invests in technology to drive innovation and an enhanced
user experience. With many customers taking a mobile-first approach to
trading, the Group saw 87% of its OTC revenue in H1 2023 generated from
customers trading on mobile or tablet devices (H2 2022: 86%, H1 2022: 85%). In
addition, 82% of OTC customer trades took place on mobile or tablet devices in
H1 2023 (H2 2022: 83%, H1 2022: 82%). This highlights Plus500's industry
leadership when it comes to mobile-first services and its relentless focus on
innovation.
Delivering against strategic roadmap
During the period, Plus500 continued to execute against its long-term
strategy, enhancing its position as an established global, market-leading
multi-asset fintech group with distinct core strengths underpinned by its
differentiated technology platforms.
Further progress was made across a number of important areas:
Geographic diversification
Further optimisation of Plus500's growing position in the substantial US
futures market
Excellent traction was made during the period in the substantial US futures
market where the Group is targeting a number of major growth opportunities.
Plus500 has established a strong and growing position in the futures market in
the US, supported by the Group's best-in-class technology and its robust
financial position.
US B2B Opportunity
Plus500 has established a new line of business with the formation of a B2B
vertical and good progress was made in developing the Group's position as a
provider of market infrastructure services for institutional clients in the US
futures market, supporting them with brokerage-execution and clearing
services. This B2B offering highlights the increasingly diversified nature of
Plus500's model, its market leadership and proven operational capabilities. It
also provides a significant growth opportunity which has been enhanced by the
Group's status as a full Clearing Firm Member of the CME Group and the
Minneapolis Grain Exchange (MGEX), with other clearing memberships in the
pipeline.
US B2C Opportunity
In addition to the B2B opportunity, Plus500 recently launched 'Plus500
Futures', a new and intuitive trading platform, specifically designed and
tailored for retail traders. This offering is performing well and as the
retail trading community in the US grows, the Group's ability to apply its
innovative and intuitive technology to this vertical, presents an attractive
opportunity to further expand its diversified revenue streams. The Group's
successful partnership with the Chicago Bulls, the iconic NBA team, continues
to increase brand awareness and visibility.
The launch of 'Plus500 Futures' follows the launch of the 'TradeSniper'
trading platform which took place in Q3 2022. Plus500 is also proud to include
a new set of offerings within the 'TradeSniper' platform, 'event-based
contracts', now available on iOS and Android applications.
Both 'Plus500 Futures' and 'TradeSniper' uniquely offer customers a fully
holistic solution of onboarding, depositing and trading in futures, and will
continue to be developed by Plus500 to provide a consistent, best‐in‐class
experience for its customers. This represents an industry first, with Plus500
having successfully leveraged its best-in-class technology and expertise to
build an end-to-end, one-stop shop that caters for all the needs of US retail
investors in accessing new trading opportunities in futures. Looking ahead,
these platforms keep the Group in a strong position to capitalise on the
continued growth in retail trading volumes in the US futures market.
Expanding international licences - significant progress made in the high
growth UAE market and a new licence obtained in the Bahamas
A new regulatory licence in the high growth UAE market was obtained during the
period, further expanding Plus500's geographic footprint and highlighting its
leading status with a broad and growing portfolio of international licences.
The Group's operation in the UAE is already fully functioning and the Group is
pleased to be in line with its strategic roadmap driven by the rapid progress
made in developing Plus500's market position in this significant market.
In July 2023, a new regulatory licence was obtained from the Securities
Commission of the Bahamas.
Plus500's global portfolio of regulatory licences represents a unique and
valuable asset. Considered together, these regulatory licences serve as an
economic moat around the Group's business, heightening also the entry barriers
to the industry. Additionally, the Group's experience and expertise in
obtaining regulatory licences leaves it ideally positioned, as it looks to
secure additional licences in new territories.
Expanding product portfolio
Bringing an ever more comprehensive array of products to customers
Plus500 is committed to leveraging its expertise to expand its product
offering, introducing innovative new asset classes, instruments and features
and deepening its customer relationships at the same time. To this end, the
Group continued to make good progress with the launch of innovative new
products in the US.
The Group continues to target the expansion of its OTC, share dealing and
futures offering, either organically by establishing a regulated operation or
via acquisitions.
Class-leading technology
Investing behind R&D and technology to maintain and strengthen competitive
advantages
As part of the Group's disciplined capital allocation policy and in order to
position itself strongly for the future, Plus500 is committed in investing in
technology, innovation and cutting-edge products. During the period, Plus500
maintained this approach to investment behind its people, products and its
R&D centres in Israel in order to attract, retain and deepen its
relationship with customers, driving growth and value for all stakeholders.
The Board is incredibly proud to have built up a base of over 25 million
customers registered on the Group's platforms, a record for the business. This
reflects the Group's focus on delivering a superior customer service and the
trust that customers continue to place in Plus500's platforms.
With on-going investments in technology and people, particularly at the
Company's R&D centres in Israel, the Group will continue leveraging this
latent base of over 25 million customers registered on its platforms, through
retention, activation and monetisation initiatives, including a premium
service offering, which continues to be rolled out to additional high value
customers.
Ongoing delivery against operational KPIs
Across its key operational metrics, the Group registered a strong performance
in H1 2023, building on the cumulative progress of recent years and
underpinned by a constant focus on delivering a high-quality customer service.
55% of OTC revenue was derived from customers trading with Plus500 for more
than three years (H2 2022: 41%, H1 2022: 36%).
50,449 New Customers were onboarded during the period (H2 2022: 49,274, H1
2022: 57,275), including 22,248 New Customers onboarded in Q2 2023 (Q2 2022:
23,535). Again, the enduring strengths of the Plus500 brand and customer
proposition become clear when this performance is considered against a period
of quieter trading volumes across the wider market.
The number of Active Customers during H1 2023 remained robust at 175,762 (H2
2022: 177,946, H1 2022: 216,928), including 122,833 in Q2 2023 (Q2 2022:
145,506). Customer Churn 10 (#_ftn10) in H1 2023 was 29.6% (H2 2022: 40.7%,
H1 2022: 29.7%), including 26.6% in Q2 2023 (Q2 2022: 31.0%).
Over a longer time period, the virtues of Plus500's high-quality earnings
model can be evidenced by looking at the cumulative average revenue from OTC
Active Customers who first deposited during 2018, which was approximately
$4,100 as at the end of H1 2023 (H2 2022: approximately $3,900, H1 2022:
approximately $3,700). This demonstrates not only the trust customers place in
the Group's trading platform, but also their long-term value.
Owing to the trust and confidence that customers have in Plus500's platforms,
customer deposits stayed at a high level in H1 2023 of $1.1 billion (H2 2022:
$1.1 billion, H1 2022: $1.2 billion), with an average deposit per Active
Customer of approximately $6,450 (H2 2022: approximately $6,400, H1 2022:
approximately $5,400). This provides a testament for the store of future value
for the Group.
Similarly, ARPU lifted to $2,097 in H1 2023 (H2 2022: $1,805, H1 2022:
$2,357), including $1,308 in Q2 2023 (Q2 2022: $1,653). This was driven by the
Group's strong revenue performance, combined with the intuitive nature and
reliability of its market-leading technology platform that drives customer
loyalty.
AUAC was $1,490 in H1 2023 (H2 2022: $1,527, H1 2022: $1,441), including
$1,627 in Q2 2023 (Q2 2022: $1,478). Plus500 has a strong track record in
delivering high ROI on marketing spend, which is expected to continue, thanks
to its unique technological capabilities.
Financial Review - performing strongly
Plus500 delivered a strong financial performance in H1 2023, generating high
returns and further enhancing the Group's cash position.
Total revenue in H1 2023 was $368.5m (H2 2022: $321.2m, H1 2022: $511.4m),
comprising $346.2m in trading income and $22.3m in interest income, which is
also included in EBITDA for the period, including revenue of $160.6m in Q2
2023 (Q2 2022: $240.5m). EBITDA for H1 2023 was $174.1m (H2 2022: $148.5m, H1
2022: $305.3m) with an EBITDA margin of 47% reported during the period (H2
2022: 46%, H1 2022: 60%).
Customer Income, a key measure of the Group's underlying performance, remained
consistent during H1 2023 at $304.3m (H2 2022: $299.8m, H1 2022: $339.8m),
including $146.5m in Q2 2023 (Q2 2022: $151.8m). Customer Trading
Performance 11 (#_ftn11) was $41.9m during H1 2023 (H2 2022: $21.4m, H1 2022:
$171.6m), including $(8.2m) in Q2 2023 (Q2 2022: $88.7m). The Group continues
to expect that the contribution from Customer Trading Performance will be
broadly neutral over time. Interest income during the period increased, owing
to wider global interest rate rises, as central banks lifted base rates.
Net profit in H1 2023 was $146.5m (H2 2022: $126.3m, H1 2022: $244.1m) and
basic earnings per share was up 19% to $1.61, compared to H2 2022 (H2 2022:
$1.35, H1 2022: $2.46).
Plus500 operates a disciplined approach to managing its cost base, which
continues to be positively heavily weighted towards variable costs. This
provides a critical advantage, giving the Group great flexibility and agility
to respond quickly to market conditions in an uncertain and dynamic economic
environment, as has been seen in recent periods. During H1 2023, 70% of the
Group's costs were variable (H2 2022: 67%, H1 2022: 73%), with the Group
maintaining a flexible and well contained cost base.
Total SG&A expenses were $196.2m during H1 2023 (H2 2022: $174.4m, H1
2022: $207.8m), the main elements of which were marketing technological
investment of $75.2m (H2 2022: $75.3m, H1 2022: $82.5m), commissions to
processing companies of $21.3m (H2 2022: $21.2m, H1 2022: $23.7m) and employee
benefits and other related expenses of $53.5m (H2 2022: $38.1m, H1 2022:
$42.8m).
Net financial income amounted to $2.6m in H1 2023 (H2 2022: $14.9m, H1 2022:
$9.0m). A substantial proportion of the Group's cash is held in US dollars in
order to provide a natural hedge, thereby reducing the impact of currency
movements on financial expenses.
Total assets were $940.1m at the end of the period (H2 2022: $1,010.0m, H1
2022: $1,072.5m), with equity of $690.8m, representing approximately 73% of
the balance sheet, following the shareholder returns in H1 2023.
Plus500 operates a highly cash generative earnings model, driven by strong
cash conversion and supported by relatively low levels of capital expenditure
as a result of its automation and technological capabilities.
The Group remains debt-free, with a cash and cash equivalents balance at the
end of H1 2023 of $849.0m (H2 2022: $930.2m, H1 2022: $995.5m).
Plus500's strong cash generation and cash balances again enabled it to invest
in growth, whilst delivering significant levels of shareholder returns. On 14
February 2023 the Company announced a share buyback programme totalling $70.0m
and separately, on 13 June 2023, the Company repurchased shares for a total
cash consideration of $127.5m.
In H1 2023, the Company executed share buybacks totalling $214.1m, comprising
the outstanding amount of the previous year's ongoing programme which was
$29.4m as at 31 December 2022, the $70.0m programme announced on 14 February
2023, of which, by 30 June 2023, $12.8m was remaining and will be completed in
the second half of 2023, and the repurchase of shares on 13 June 2023 in the
amount of $127.5m. In addition, $29.9m was declared as final and special
dividends on 14 February 2023 in relation to FY 2022 and paid to shareholders
on 11 July 2023.
The consolidated financial statements are presented in US dollars, which is
the Company's functional and presentation currency. Foreign currency
transactions and balances in currencies different from the US dollar are
translated into the US dollar using the exchange rates prevailing on the dates
of the transactions or at the balance sheet date.
A proven track record built on responsible leadership, risk management and
customer care
Plus500 is a responsible and trusted market leader. Investing in regulatory
compliance, implementing and maintaining industry leading governance and
controls remains a top priority across the Group, providing it with a key
competitive advantage. The Group takes a customer-centric approach, for
example by providing negative balance protection to Plus500's customers on a
global basis, meaning that customers cannot lose more than the funds they have
on their account. Plus500 complies with global regulatory standards and
operates within an established regulatory network, managed by its regulated
subsidiaries and co-ordinated centrally.
Plus500's innovative offering, '+Insights', continues to receive positive
take-up and feedback from customers and demonstrates Plus500's on-going focus
on customer care and delivering on customer requirements. Furthermore, the
Group's end-to-end proprietary tech stack enables it to react rapidly to
changing regulation, facilitating a robust risk management approach. The
Group's sophisticated risk management tools are provided free of charge for
customers to manage leveraged exposure, including measures such as stop
losses.
A purpose-led Group committed to sustainability
Plus500 is dedicated to operating responsibly and sustainably in all aspects
of its business and believes this approach is both its duty and an essential
part of effective management.
Enabling people to access the financial markets through the Group's intuitive,
secure and user-friendly platforms is of great importance to Plus500, as is
the Board's emphasis on protecting and supporting customers. The Group is
continuing to make strong progress in providing educational content and
information on the inherent risks related to trading, through prominent risk
warnings and an increasing number of training tools and features on its
platforms, including the launch of a Trading Academy portal in 2022.
Earlier this year, Plus500 also introduced a new ESG trading suite to its OTC
and share dealing platforms. The suite consists of ESG scores for the Group's
wide variety of stocks, as well as exclusive tradeable ESG Impact Indices,
tracking companies that strive for accountability and aligning with customers'
ethical investing requirements.
Under the leadership of the Company's highly respected Chair, Professor Jacob
A. Frenkel, Plus500 places the utmost importance on governance, transparent
investor engagement, sustainability and social responsibility. The Board's
balance of skills and experience continues to develop, as well as continuing
maintain its high level of gender diversity, with 50% female Board members.
Growth and capital returns
Plus500's track record of delivering outstanding shareholder returns puts the
Company amongst the top cohort of companies on a total returns basis within
the FTSE All-Share Index, since its IPO in 2013. In that time, Plus500 has
generated approximately $3.0 billion of cash from operations and returned
approximately $1.9 billion to shareholders through share buybacks and
dividends. In H1 2023, this trend continued, with returns totalling $347.4m,
of which $120.0m in dividends and buybacks was announced today, $127.5m
through the repurchase of shares executed on 13 June 2023 and $99.9m in
dividends and buybacks as announced on 14 February 2023.
Shareholder returns related to H1 2023
The Board today announces a total return of $120.0m in relation to H1 2023,
including a new share buyback of $60.0m, comprising of an interim share
buyback programme of $33.7m and a special share buyback programme of $26.3m.
In addition, a total dividend was announced today of $60.0m 12 (#_ftn12) ,
($0.7344 per share), comprising of an interim dividend of $33.7m ($0.4125 per
share) and a special dividend of $26.3m ($0.3219 per share). Both dividends
have an ex-dividend date of 24 August 2023, a record date of 25 August 2023
and a payment date of 9 November 2023.
Demonstrating the Board's confidence in the Company's prospects, its robust
financial position and ability to deliver significant future shareholder
returns, the Board has resolved to conduct a new share buyback programme to
acquire up to $60.0m of the Company's shares, which will commence following
the completion of the current share buyback programmes.
During H1 2023, the Company executed share buyback programmes, with 11,485,961
ordinary shares purchased during the period, amounting to a total of $214.1m,
at an average share price of £14.93. The remaining share buyback programmes
announced on 14 February 2023, as of 30 June 2023, amounted to $12.8m and will
continue to run during the second half of 2023, in addition to the new share
buyback programme of $60.0m announced today.
At 30 June 2023, the Company held in treasury a total of 32,582,466 ordinary
shares (which are not entitled to dividends and have no voting rights at the
Company's general meetings), which were purchased following the commencement
of Plus500's initial share buyback programmes in 2017, representing 28.4% of
the Company's issued share capital at such time (the total treasury shares
held by the Company comprise the shares purchased less issued treasury
shares).
FY 2023 outlook unchanged, well placed to seize the opportunities ahead
The Board remains confident about the Group's performance for FY 2023 and
anticipates that Plus500's revenue and EBITDA for the current financial year
will be in line with current market expectations. Plus500's market leading
position, the increasingly diversified nature of its revenue streams and the
strength of its customer relationships leaves the Group ideally positioned to
continue scaling, while creating sustainable earnings growth and value for all
stakeholders.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2023 (UNAUDITED)
Six months Year ended
ended 30 June 31 December
2023 2022 2022
(Unaudited) (Audited)
Note U.S. dollars in millions
Trading income 4 346.2 511.4 832.6
Interest income 3 22.3 - -
TOTAL REVENUE 368.5 511.4 832.6
Selling and marketing expenses 5 148.3 169.5 302.1
Administrative and general expenses 6 47.9 38.3 80.1
OPERATING PROFIT 172.3 303.6 450.4
Financial income 6.6 17.1 41.3
Financial expenses 4.0 8.1 17.4
FINANCIAL INCOME, NET 2.6 9.0 23.9
PROFIT BEFORE INCOME TAX 174.9 312.6 474.3
INCOME TAX EXPENSE 8 28.4 68.5 103.9
PROFIT AND COMPREHENSIVE INCOME
FOR THE PERIOD 146.5 244.1 370.4
Basic earnings per share (In U.S. dollars) 9 1.61 2.46 3.81
Diluted earnings per share (In U.S. dollars) 9 1.58 2.43 3.77
The accompanying notes are an integral part of the condensed consolidated
interim financial information.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 JUNE 2023 (UNAUDITED)
As of As of
30 June 31 December
2023 2022 2022
(Unaudited) (Audited)
Note U.S. dollars in millions
ASSETS
Non-current assets
Property, plant and equipment 3.7 2.5 2.6
Goodwill and other intangible assets, net 38.5 39.9 38.7
Right of use assets 13.4 5.0 5.6
Long term other receivables 5.0 4.7 5.8
Total non-current assets 60.6 52.1 52.7
Current assets
Income tax receivable 0.7 - 0.2
Other receivables and others 29.8 24.9 26.9
Cash and cash equivalents 849.0 995.5 930.2
Total current assets 879.5 1,020.4 957.3
TOTAL ASSETS 940.1 1,072.5 1,010.0
LIABILITIES
Non-current liabilities
Lease liabilities (net of current maturities) 10.7 3.0 3.6
Share based compensation 0.5 1.0 -
Deferred tax liability 6.9 7.9 6.9
Total non-current liabilities 18.1 11.9 10.5
Current liabilities
Dividend 10 29.9 59.9 -
Share based compensation 2.8 7.0 6.3
Income tax payable 125.0 114.6 116.4
Other payables 56.5 59.1 72.2
Service suppliers 13.3 12.7 11.7
Current maturities of lease liabilities 2.8 2.0 2.0
Trade payables - due to clients 12 0.9 7.0 10.4
Total current liabilities 231.2 262.3 219.0
TOTAL LIABILITIES 249.3 274.2 229.5
EQUITY
Ordinary shares 0.3 0.3 0.3
Share premium 22.2 22.2 22.2
Cost of Company's shares held by the Company 11 (554.9) (258.9) (341.1)
Retained earnings 1,223.2 1,034.7 1,099.1
Total equity 690.8 798.3 780.5
TOTAL LIABILITIES AND EQUITY 940.1 1,072.5 1,010.0
David Zruia Elad Even-Chen Prof. Jacob A. Frenkel
Chief Executive Officer Group Chief Financial Officer Non-Executive Director and Chairman
Date of approval of the condensed consolidated interim financial information
by the Company's Board of Directors: 14 August 2023
Registered Company number (Israel): 514142140
The accompanying notes are an integral part of the condensed consolidated
interim financial information.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2023 (UNAUDITED)
Ordinary Share Cost of Company's shares held by Retained
shares premium the Company earnings Total
U.S. dollars in millions
BALANCE AT 1 JANUARY 2023 (audited) 0.3 22.2 (341.1) 1,099.1 780.5
CHANGES DURING THE SIX MONTHS PERIOD
ENDED 30 JUNE 2023 (unaudited):
Profit and comprehensive income for the period - - - 146.5 146.5
Share based compensation - - - 7.8 7.8
TRANSACTION WITH SHAREHOLDERS:
Dividends - - - (29.9) (29.9)
Issue of treasury shares to settle
equity share based compensations - - 0.3 (0.3) -
Acquisition of treasury shares - - (214.1) - (214.1)
BALANCE AT 30 JUNE 2023 (unaudited) 0.3 22.2 (554.9) 1,223.2 690.8
BALANCE AT 1 JANUARY 2022 (audited) 0.3 22.2 (207.5) 846.3 661.3
CHANGES DURING THE SIX MONTHS PERIOD
ENDED 30 JUNE 2022 (unaudited):
Profit and comprehensive income for the period - - - 244.1 244.1
Share based compensation - - - 4.5 4.5
TRANSACTION WITH SHAREHOLDERS:
Dividends - - - (59.9) (59.9)
Issue of treasury shares to settle
equity share based compensations - - 0.3 (0.3) -
Acquisition of treasury shares - - (51.7) - (51.7)
BALANCE AT 30 JUNE 2022 (unaudited) 0.3 22.2 (258.9) 1,034.7 798.3
BALANCE AT 1 JANUARY 2022 (audited) 0.3 22.2 (207.5) 846.3 661.3
CHANGES DURING THE YEAR
ENDED 31 DECEMBER 2022 (audited):
Profit and comprehensive income for the year - - - 370.4 370.4
Share based compensation - - - 7.5 7.5
TRANSACTION WITH SHAREHOLDERS:
Dividends - - - (119.9) (119.9)
Issue of treasury shares to settle
equity share based compensations - - 5.2 (5.2) -
Acquisition of treasury shares - - (138.8) - (138.8)
BALANCE AT 31 DECEMBER 2022 (audited) 0.3 22.2 (341.1) 1,099.1 780.5
The accompanying notes are an integral part of the condensed consolidated
interim financial information.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2023 (UNAUDITED)
Six months ended Year ended
30 June 31 December
2023 2022 2022
(Unaudited) (Audited)
Note U.S. dollars in millions
OPERATING ACTIVITIES:
Cash generated from operations 13 130.4 344.9 506.8
Income tax paid, net (18.4) (32.9) (66.2)
Interest received, net 22.3 2.2 13.5
Net cash flows provided by operating activities 134.3 314.2 454.1
INVESTING ACTIVITIES:
Acquisition of subsidiaries, net of cash acquired - (4.6) (4.6)
Purchase of property, plant and equipment (1.6) (0.3) (0.8)
Net cash flows used in investing activities (1.6) (4.9) (5.4)
FINANCING ACTIVITIES:
Dividend paid to equity holders of the Company - - (119.9)
Payment of principal in respect of leases liabilities (1.3) (1.1) (2.3)
Acquisition of treasury shares 11 (214.1) (51.7) (138.8)
Net cash flows used in financing activities (215.4) (52.8) (261.0)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (82.7) 256.5 187.7
BALANCE OF CASH AND CASH EQUIVALENTS AT
BEGINNING OF THE PERIOD 930.2 749.5 749.5
Gains (losses) from effects of exchange rate changes on
cash and cash equivalents 1.5 (10.5) (7.0)
BALANCE OF CASH AND CASH EQUIVALENTS AT
END OF THE PERIOD 849.0 995.5 930.2
The accompanying notes are an integral part of the condensed consolidated
interim financial information.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
NOTE 1 - GENERAL INFORMATION
Information on activities
Plus500 Ltd. (the "Company" and together with its subsidiaries, the "Group")
is a global multi-asset fintech group operating proprietary technology-based
trading platforms. Plus500 offers customers a range of trading products,
including OTC ("Over-the-Counter" products, namely Contracts for Difference
(CFDs)), share dealing, as well as futures and options on futures. The Company
has developed and operates an online trading platform within the OTC sector,
enabling its international customer base of individual customers to trade OTC
products on over 2,500 underlying financial instruments internationally.
The Group's offering is available internationally with main market presence in
the UK, the European Economic Area ("EEA"), Australia, the US, and the Middle
East and has customers located in more than 50 countries worldwide. The Group
operates through operating subsidiaries regulated by the Financial Conduct
Authority ("FCA") in the UK, the Australian Securities and Investments
Commission ("ASIC") in Australia, the Cyprus Securities and Exchange
Commission ("CySEC") in Cyprus, the Israel Securities Authority ("ISA") in
Israel, the Financial Markets Authority ("FMA") in New Zealand, the Financial
Sector Conduct Authority ("FSCA") in South Africa, the Monetary Authority of
Singapore ("MAS") in Singapore, the Financial Services Authority ("FSA") in
the Seychelles, the Commodities Futures Trading Commission ("CFTC") in the US,
the Estonian Financial Supervision Authority ("EFSA") in Estonia, the
Financial Services Agency ("FSA") in Japan, the Dubai Financial Services
Authority ("DFSA") in the UAE and the Securities Commission of The Bahamas
("SCB") in the Bahamas.
The Company also has a subsidiary in Bulgaria which provides operational
services to the Group.
The Company has been listed since 2013 on the London Stock Exchange. Since
2018, Plus500 Ltd. has been a FTSE 250 listed entity, following the Company's
shares being admitted to the premium listing segment of the Official List and
to trading on the London Stock Exchange Main Market for listed securities.
The Group operates in three operating sectors: OTC trading; share dealing; and
futures and options on futures. The Group presents its operation as one
operating segment.
The address of the Company's principal offices is Building 25, Matam, Haifa
3190500, Israel.
NOTE 2 - BASIS OF PREPARATION
Basis of accounting and accounting policies
These condensed consolidated interim financial information for the six month
period ended 30 June 2023 have been prepared in accordance with IAS 34 -
'Interim financial reporting' as issued by the International Accounting
Standards Board. The condensed consolidated interim financial information
should be read in conjunction with the annual financial statements for the
year ended 31 December 2022, which have been prepared in accordance with IFRS.
This condensed consolidated interim financial information is reviewed and not
audited.
Going concern
The Group has considerable financial resources, a broad range of financial
instruments and a substantial active customer base which is geographically
diversified. As a consequence, the Company's Board of Directors (the "Board")
believes that the Group is well placed to manage its business risks in the
context of the current economic outlook. Accordingly, the Board has a
reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. The Board therefore
continues to adopt the going concern basis in preparing this condensed
consolidated interim financial information.
NOTE 3 - ACCOUNTING POLICIES
Significant accounting policies and computation methods used in preparing the
condensed consolidated interim financial information are consistent with those
used in preparing the 2022 annual financial statements, except for the
following:
Income tax in interim periods is recognised based on management's best
estimate of the annual income tax rate expected (see note 8).
During the six month period ended 30 June 2023, management has updated the
accounting policy regarding the presentation of interest income. Accordingly,
interest income is accrued based on the effective interest rate method, and is
presented as part of the Group's total revenue in the statement of
comprehensive income. Previously, interest income was presented as part of
financial income in the statement of comprehensive income.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (continued)
NOTE 3 - ACCOUNTING POLICIES (continued)
The voluntary change in accounting policy is intended to provide shareholders
with better expression of its business activities and to enhance the
comparability of its financial statements to its peers. The effect of this
change on the consolidated financial statements in previous periods is not
material for the consolidated financial statements as a whole.
NOTE 4 - TRADING INCOME
The trading income attributed to geographical areas according to the location
of the customer is as follows:
Six months Year ended 31 December
ended 30 June
2023 2022 2022
(Unaudited) (Audited)
U.S. dollars in millions
European Economic Area (EEA) 145.6 234.0 372.9
United Kingdom 29.1 66.8 100.4
Australia 24.4 40.5 67.2
Rest of the World 147.1 170.1 292.1
346.2 511.4 832.6
NOTE 5 - SELLING AND MARKETING EXPENSES
Six months Year ended 31 December
ended 30 June
2023 2022 2022
(Unaudited) (Audited)
U.S. dollars in millions
Advertising and technology costs 69.5 75.5 144.3
Commissions to processing companies 21.3 23.7 44.9
Server and data feeds commissions 8.5 8.4 14.6
Payroll and related expenses 13.0 11.7 24.2
Variable bonuses 6.9 9.8 8.6
Share based compensation 4.8 2.0 6.1
Commissions to media buying 5.7 7.0 13.5
Other 18.6 31.4 45.9
148.3 169.5 302.1
NOTE 6 - ADMINISTRATIVE AND GENERAL EXPENSES
Six months Year ended 31 December
ended 30 June
2023 2022 2022
(Unaudited) (Audited)
U.S. dollars in millions
Payroll and related expenses 10.3 8.0 16.3
Variable bonuses 8.4 6.1 10.4
Share based compensation 10.1 5.2 15.3
Professional and regulatory fees 8.7 12.6 23.0
Depreciation and amortisation 1.8 1.7 3.4
Other 8.6 4.7 11.7
47.9 38.3 80.1
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (continued)
NOTE 7 - OPERATING EXPENSES
The presentation below reflects the breakdown of operating expenses by nature
of expense:
Six months Year ended 31 December
ended 30 June
2023 2022 2022
(Unaudited) (Audited)
U.S. dollars in millions
Advertising, marketing and commissions to media buying 55.0 64.3 122.0
Employee benefits and other related expenses 53.5 42.8 80.9
IT and technology costs 28.7 26.6 50.4
Commissions to processing companies 21.3 23.7 44.9
Professional and regulatory fees 8.7 12.6 23.0
Depreciation and amortisation 1.8 1.7 3.4
Other 27.2 36.1 57.6
196.2 207.8 382.2
In the year ended 31 December 2022 and the six month periods ended 30 June
2023 and 30 June 2022, IT and technology costs together with additional
allocated other technological related costs, were $74.4 million, $39.8 million
and $33.3 million, respectively.
NOTE 8 - INCOME TAX EXPENSES
Law for the Encouragement of Capital Investments, 5719-1959
The Law for the Encouragement of Capital Investments, 5719-1959, generally
referred to as the "Investment Law", provides certain incentives for capital
investments in production facilities (or other eligible assets) by "Industrial
Enterprises" (as defined under the Investment Law).
New Tax benefits under the 2017 Amendment that became effective on 1 January
2017 (the "2017
Amendment")
The 2017 Amendment was enacted as part of the Economic Efficiency Law that was
published on 29 December 2016, and is effective as of 1 January 2017. The 2017
Amendment provides new tax benefits, as described below, and is in addition to
the other existing tax beneficial programmes under the Investment Law.
The 2017 Amendment provides that a technology company satisfying certain
conditions will qualify as a Preferred Technological Enterprise ("PTE") and
will thereby enjoy a reduced corporate tax rate of 12% on income that
qualifies as Preferred Technology Income, as defined in the Investment Law.
Dividends distributed by a PTE, paid out of Preferred Technology Income, are
generally subject to withholding tax at source at the rate of 20% or such
lower rate as may be provided in an applicable tax treaty.
a. Company taxation in Israel
The full corporate tax rate in Israel for the years 2023 and 2022 is 23%.
Under the 2017 Amendment, provided the conditions stipulated therein are met,
technological income derived by Preferred Companies from "Preferred
Technological Enterprise" (as defined in the 2017 Amendment), would be subject
to reduced corporate tax rates of 12%.
A Preferred Company distributing dividends from technological income derived
from its PTE would generally subject the recipient to a 20% withholding tax
(or lower, if so provided under an applicable tax treaty).
At the beginning of July 2020, the Company received an approval from the
Israeli Innovation Authority ("IIA") that together with the tax ruling
received from the ITA in May 2019, recognises the Company as a PTE for the
years 2017, 2018 and 2019. Accordingly, the applicable tax rate for the
preferred technological income of a PTE for these years was 12%. The Company
is also considered as PTE for the years 2020 and 2021. As a result, the
Company's corporate tax rate for the years 2021 and 2020 was 12%, subject to
the Company complying with the conditions of the Law for the Encouragement of
Capital Investments.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (continued)
NOTE 8 - INCOME TAX EXPENSES (continued)
In January 2022, the Company's status as a PTE, as accredited by the ITA under
the tax regime in Israel, has been extended for the years 2022, 2023, 2024,
2025 and 2026, subject to the Company complying with the conditions of the Law
for the Encouragement of Capital Investments. Consequently, the Company's
corporate tax rate for each of these years will be reduced from 23% to 12% and
the withholding tax rate applicable for dividends will be reduced from 25% to
20%.
b. Tax assessments
The Company has final tax assessments up to the year 2019.
The assessments of amounts of current and deferred taxes require the Group's
management to take into consideration uncertainties that its tax position will
be accepted and of incurring any additional tax expenses. This assessment is
based on estimates and assumptions based on interpretation of tax laws and
regulations, and the Group's past experience. It is possible that new
information will become known in future periods that will cause the final tax
outcome to be different from the amounts that were initially recorded, such
differences will impact the current and deferred income tax assets and
liabilities in the period in which such determination is made.
c. Taxes on income included in the consolidated income statement for the
reported periods
Six months Year ended 31 December
ended 30 June
2023 2022 2022
(Unaudited) (Audited)
U.S. dollars in millions
Current taxes:
Current taxes in respect of current period's profit 27.6 66.9 103.5
Tax income in respect of previous years - 0.5 0.5
27.6 67.4 104.0
Deferred income taxes:
Change of deferred tax assets 0.8 1.1 (0.1)
Taxes on income expenses 28.4 68.5 103.9
NOTE 9 - EARNINGS PER SHARE
Earnings per share is calculated by dividing the profit attributable to equity
holders of the Company by the weighted average number of ordinary shares in
issue during the period.
Six months Year ended 31 December
ended 30 June
2023 2022 2022
(Unaudited) (Audited)
Profit attributable to equity holders of the
Company (U.S. dollars in millions) 146.5 244.1 370.4
Weighted average number of ordinary shares in
issue*:
Basic 90,906,059 99,265,601 97,311,485
Dilutive effect of equity share based compensation 1,738,170 1,204,619 943,047
Diluted 92,644,229 100,470,220 98,254,532
Basic earnings per share (In U.S. dollars) 1.61 2.46 3.81
Diluted earnings per share (In U.S. dollars) 1.58 2.43 3.77
*After weighting the effect of Company's share buyback programmes (see note
11).
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (continued)
NOTE 10 - DIVIDENDS
The amounts of dividends and the amounts of dividends per share for the years
2023 and 2022 declared and distributed by the Board are as follows:
Amount of dividend Amount of dividend Date of payment to
Date of declaration (US $ in millions)* per share (US $) Shareholders
15 February 2022 59.9 0.5995 11 July 2022
17 August 2022 60.0 0.6238 11 November 2022
14 February 2023 29.9 0.3234 11 July 2023
On 14 August 2023, the Company declared an interim dividend and a special
dividend in the amounts of $33.7 million and $26.3 million, respectively (see
note 15).
*Between the dividend announcement date and the record date of the dividend,
the number of issued and outstanding ordinary shares of
the Company decreased as a result of the repurchase by the Company of its
ordinary shares during such period and the classification of such repurchased
ordinary shares as treasury shares that are not entitled to dividends.
However, this did not affect the dividend per share as announced on the
dividend announcement date.
NOTE 11 - COST OF COMPANY'S SHARES HELD BY THE COMPANY
The Board approves share buyback programmes. The share buyback programmes are
funded from the Company's net cash balances.
Aggregate
Number of ordinary shares purchased purchase amount (US $ in millions) Average price of shares purchased
Period
Year ended 31 December 2022 6,943,359 138.8 £16.27
Six months ended 30 June 2022 2,670,651 51.7 £14.98
Six months ended 30 June 2023 11,485,961 214.1 £14.93
During the six month periods ended 30 June 2023 and 2022, the Company issued a
total of 16,143 and 14,165, respectively, of its treasury shares.
NOTE 12 - TRADE PAYABLES - DUE TO CLIENTS
As of 31 December
As of 30 June
2023 2022 2022
(Unaudited) (Audited)
U.S. dollars in millions
Customers' deposits, net* 279.9 274.6 282.8
Segregated client funds (279.0) (267.6) (272.4)
0.9 7.0 10.4
*Customers' deposits, net are comprised of the following:
Customers' deposits 419.8 385.1 411.5
Less - financial derivative open positions:
Gross amount of assets (159.0) (135.9) (139.0)
Gross amount of liabilities 19.1 25.4 10.3
279.9 274.6 282.8
* The total amount of 'Trade payables - due to clients' includes bonuses to
clients.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION (continued)
NOTE 13 - CASH GENERATED FROM OPERATIONS
Six months Year ended 31 December
ended 30 June
2023 2022 2022
(Unaudited) (Audited)
U.S. dollars in millions
Cash generated from operating activities
Net income for the period 146.5 244.1 370.4
Adjustments required to reflect the cash flows from
operating activities:
Depreciation and amortisation 0.7 0.8 1.4
Amortisation of right of use assets 1.1 0.9 2.0
Liability for share based compensation 1.0 2.7 11.9
Settlement of share based compensation (10.8) (7.0) (7.3)
Equity share based compensation 7.8 4.5 7.5
Taxes on income 28.4 68.5 103.9
Interest expenses in respect of leases 0.1 0.1 0.1
Exchange differences in respect of leases 0.2 (0.5) (0.4)
Interest income (22.3) (2.2) (13.5)
Foreign exchange losses (gains) on operating activities (2.6) 0.7 (4.5)
3.6 68.5 101.1
Operating changes in working capital:
Decrease (increase) in other receivables and others (2.9) 7.1 5.2
Increase (decrease) in trade payables due to clients (9.5) 6.4 9.8
Increase (decrease) in other payables (8.9) 21.6 24.1
Increase (decrease) in service suppliers 1.6 (2.8) (3.8)
(19.7) 32.3 35.3
Cash generated from operations 130.4 344.9 506.8
Non-cash transactions
On 14 February 2023, the Board declared a dividend in an amount of $29.9
million ($0.3234 per share). The dividend was paid to shareholders on 11 July
2023 (see note 10). In addition, $8.9 million in right of use assets and lease
liabilities were recognised during the six month period ended on 30 June 2023.
NOTE 14 - FINANCIAL RISK MANAGEMENT
Financial risks arising from financial instruments are analysed into market,
credit, concentration and liquidity risks. The condensed consolidated interim
financial information does not include all financial risk management
information and disclosures required in the annual financial statements.
Details of how these risks are managed are discussed in the financial risk
management note of the 2022 annual financial statements.
Further to the mentioned above, there has not been a significant change in the
Group's financial risk management processes or policies since year end 2022.
NOTE 15 - SUBSEQUENT EVENTS
In July 2023, the Group obtained a regulatory licence in the Bahamas, granted
by the Securities Commission of The Bahamas (SCB).
On 14 August 2023 the Board declared an interim dividend in an amount
of $33.7 million ($0.4125 per share). The dividend record date is 25 August
2023 and it will be paid to the shareholders on 9 November 2023.
On 14 August 2023 the Board declared a special dividend in an amount of $26.3
million ($0.3219 per share). The dividend record date is 25 August 2023 and
it will be paid to the shareholders on 9 November 2023.
On 14 August 2023, the Board approved a new programme to buy back an amount of
up to $60.0 million of the Company's ordinary shares, comprised of an interim
share buyback programme in the amount of $33.7 million and a special share
buyback programme in the amount of $26.3 million.
1 (#_ftnref1) Market expectations based on compiled analysts' consensus
forecasts, which can be found on the Investor Relations section of the
Company's website. As at 7 August 2023, consensus forecasts for FY 2023
revenue and EBITDA are $614.2m and $274.9m, respectively
2 (#_ftnref2) All figures for the six month period ended 30 June 2023, for
the six month period ended 31 December 2022 and for the six month period ended
30 June 2022, included in this announcement are unaudited
3 (#_ftnref3) H2 2022 provides a more meaningful comparator versus H1 2023,
given the significantly heightened volatility experienced in H1 2022 across
financial markets
4 (#_ftnref4) Customer income - Revenue from OTC Customer Income (customer
spreads and overnight charges) and Non-OTC Customer Income (commissions from
the Group's futures and options on futures operation and from 'Plus500
Invest', the Group's share dealing platform)
5 (#_ftnref5) EBITDA - Revenue (trading income and interest income) minus
operating expenses plus depreciation and amortisation
6 (#_ftnref6) Active Customers - Customers who made at least one real money
trade during the period
7 (#_ftnref7) ARPU - Average Revenue Per User
8 (#_ftnref8) New Customers - Customers depositing for the first time
9 (#_ftnref9) AUAC - Average User Acquisition Cost
10 (#_ftnref10) Customer Churn: [(Active Customers (T) + New Customers
(T+1)) - Active Customers (T+1)]/ Active Customers (T)
11 (#_ftnref11) Customer Trading Performance - gains/losses on customers'
trading positions
12 (#_ftnref12) The total estimated dividend payout of $60.0m is based on
81,695,875 ordinary shares issued as at 13 August 2023. The total dividend
payout will be subject to the ordinary shares that will be repurchased between
14 August 2023 and the dividend record date of 25 August 2023, which will be
held in treasury and therefore will not be entitled to a dividend and the
actual aggregate dividend payout will be reduced accordingly.
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. END IR NKNBQCBKDAFDRecent news on Plus500
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